Canara HSBC Future Smart ULIP: Long-term charges are smart, short-term charges are not

Premium allocation and policy administration charges reduce drastically beyond 10 years in comparison to other ULIPs

Canara HSBC Oriental Bank of Commerce Life Insurance Company has launched Future Smart ULIP, offering insurance cover to ensure securing a child's future along with an opportunity to meet future financial needs.

One of the features is 'Milestone Withdrawal' which will give the customer 15% of the fund value in each of the last five years of the policy. The remaining fund value will be given at the time of plan maturity as chosen.

The premium allocation charge and policy administration charge for five years are in line with other ULIP products. The charges for 10 years are slightly more than that for other ULIP products, but the charges for more than 10 years goes down drastically. This is because of the zero premium allocation charge from the 6th year and a low policy administration charge of 0.05% per month for five years, which increases by 20% every five years.

The brochure mentions sample mortality charges which are meaningless as they are the lowest numbers that we have come across and may be misleading. Moreover, child ULIPs are known to have higher mortality charges than regular ULIPs, to provide for benefits like premium waiver in the case of a policyholder's death and so on. Be sure to find out the exact mortality charges before investing in the plan.

The plan allows the policyholder to change the sum assured from the 6th year. There will be no change in the annual premium as a result of any change in the sum assured. It will, however, have an impact on the mortality charge, and result in a change in the amount of funds used for investments.

Speaking at the launch meeting, Mario Perez, director-sales, marketing & products, Canara HSBC Oriental Bank of Commerce Life Insurance Company, said: "At Canara HSBC OBC Life Insurance, we design products that fulfill the long-term needs of our customers. Our 'Future Smart Plan' ensures that the future financial needs of a child are not disturbed, even in the case of an unfortunate event."

"We are offering lower allocation charges if the customer opts for ECS (electronic clearing service) on standing instructions, for the payment of premium, an unbeatable combination of lower costs and increased convenience. 'Milestone Withdrawal' helps the customer to meet the continuing education needs of the child in the context of the ever-rising education fees," Mr Perez said.

Premium allocation charge: This is a percentage of the premium appropriated towards charges from the premium received. If paid through ECS/SI - 8.25% in year 1, 6.30% in years 2 and 3, 5.30% from year 4 to 10, nil from year 11 onwards. By any other mode - in year 1 it is 8.40%, in years 2 and 3 6.40%, from year 4 to 10 it is 5.40%, and nil from year 11 onwards.

Policy administration charge will be 0.05% per month on the annual premium in the first five policy years. Thereafter, it will increase by 20% every five years.

Policy term and annual premium amount: 10, 15, 20 or 25 years; the minimum annual premium in this plan is Rs25,000 ( Rs50,000 for policy term of 10 years) and there is no upper limit.

The minimum life cover that a customer can choose depends on the age and the policy term chosen: For ages below 45 the 10, 15, 20 years term will be 10 x annual premium; for 25 years term the life cover will be 12.5 x annual premium. For ages 45 and above it is 7 x annual premium. There is no maximum limit on life cover in this plan; however, the life cover provided will depend on underwriting.


Biocon Q3 net up 24.55% to Rs100.75 crore

New Delhi: Boosted by robust growth in the biopharmaceuticals segment, Biocon today reported 24.55% increase in its net profit to Rs100.75 crore for the third quarter ended 31 December 2010 over Rs80.89 crore in the same period last fiscal, reports PTI.

Net sales for the third quarter this year rose to Rs728.05 crore from Rs635.12 crore in the same year ago period, up 14.63%.

The company said during the quarter it achieved its highest ever quarterly profit after tax (PAT) at Rs101 crore.

"Biocon has delivered the highest ever PAT this quarter and has crossed the Rs100 crore mark. The operating margin has also increased to 24% this quarter, reflecting the improved quality of earnings," Biocon chairman and managing director Kiran Mazumdar-Shaw said.

The biopharma segment continued to be the growth driver contributing Rs649.16 crore to the total revenue for the third quarter while contact research and manufacturing services chipped in with Rs79 crore.

Further commenting on the financial performance, Ms Shaw said increased profitability would enable the company to invest in advancing research programmes and expand manufacturing and marketing partnerships, "which we believe, are catalysts of growth for the future".

The company said preliminary efficacy data announced from phase III clinical trails on oral insulin candidate 'IN-105' showed encouraging results in patients with Type 2 diabetes.

"Insulin data trial would be put to good use and based on the encouraging results, Biocon is committed to continue its global development of IN-105 in partnership with a global pharmaceutical partner for which we plan to initiate the discussion shortly," Ms Shaw said.

Phase III clinical trials are tests conducted on a bigger sample size of up to 3000 patients for a new drug molecule.

The company also said the phase III clinical trials for the Anti-CD6 targeting monoclonal antibody (T1h) programme for psoriasis are ongoing.

Patient enrolment for this has been completed and the primary end point is expected to be evaluated in Q1 of next year, it added.

During the quarter, Biocon had announced an initial investment of about $161 million to set up a bio- manufacturing and research and development facility in Malaysia. It is expected to start operations by 2014.


Personal finance Friday

Aviva Life Insurance launches two new insurance plans; Birla Sun Life MF launches Short Term FMP-Series 5; Taurus MF floats Fixed Maturity Plan Series A; RBI to issue notes in Rs10 denomination with new features; Omkar Speciality Chemicals to introduce IPO on 24th January

Aviva Life Insurance launches two new insurance plans

Aviva Life Insurance has launched two new insurance plans-Aviva Life Shield Platinum and Aviva Dhan Varsha. Aviva Life Shield Platinum comes at a competitive cost with options to choose the protection need ranging from life protection, income replacement or loan protection. Aviva Dhan Varsha, traditional investment cum protection plan which gives a guaranteed addition of 6% to 9% of the life cover along with life protection and riders to secure one's future.
TR Ramachandran, CEO and managing director, Aviva Life Insurance India said, "The two products that we have introduced are on a traditional platform and seek to address concerns on loan protection, income protection as well as offer guaranteed returns. India is grossly underinsured with only 4% of insurance penetration and a growing base of insurable population in the age group of 15-59 years. We believe that term insurance products like Aviva LifeShield Platinum will act as a catalyst in providing protection to many more Indians at affordable rates."

BNP Paribas MF launches Fixed Term Fund-Series 20 B

BNP Paribas Mutual Fund has launched BNP Paribas Fixed Term Fund-Series 20 B, a close-ended income scheme.
The investment objective of the scheme would be to achieve growth of capital through investments made in a basket of fixed income securities maturing on or before the maturity of the scheme.
The new issue opens on 20th January and closes on 24th January. The minimum investment amount is Rs5,000.

ICICI Pru MF floats Fixed Maturity Plan-Series 55-1 Year Plan A

ICICI Prudential Mutual Fund has launched ICICI Prudential Fixed Maturity Plan-Series 55-1 Year Plan A, a close-ended income scheme.
The investment objective of the plan under the scheme is to generate regular returns by investing in fixed income securities/debt instruments which mature on or before the date of maturity of the plan/scheme.
The new issue opens on 20 January and closes on 1st February. The minimum investment amount is Rs5,000.

Tata MF unveils Fixed Maturity Plan Series 30-Scheme B

Tata Mutual Fund has launched Tata Fixed Maturity Plan Series 30-Scheme B, a close-ended income scheme.
The investment objective is to generate income and/or capital appreciation by investing in wide range of debt and money market instruments having maturity in line with the maturity of the scheme.
The new issue opens on 20th January and closes on 24th January. The minimum investment amount is Rs10,000.

IDFC Mutual Fund announces dividend under Imperial Equity Fund

IDFC Mutual Fund has declared dividend under IDFC Imperial Equity Fund. The quantum of dividend for distribution will be Rs2 per unit, subject to the availability of distributable surplus. The investment objective of the scheme is to generate capital appreciation by investing predominantly in equity and equity related instruments. The record date for distribution of dividend is 25 January 2011.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)